Money Markets
By JOHN GACHIRI, jgachiri@ke.nationmedia.com
In Summary
- Chagem Power Ltd will build a plant on a 40-hectare site in Loradiak, 10 kilometres from Kona Baridi off Magadi Road, the second such facility planned for Kajiado.
- The 50MW plant will be financed by China Exim Bank, which is also lending electricity distributor Kenya Power Sh9 billion.
- The power will be generated by 34 GE turbines.
Local firm Chagem Power Ltd plans to put up a Sh4.8
billion 50 megawatt (MW) wind farm in Kajiado County, bringing the wind
power in the pipeline to over 500 megawatts.
The firm will build a plant on a 40-hectare site in
Loradiak, 10 kilometres from Kona Baridi off Magadi Road, the second
such facility planned for Kajiado.
Jamii Bora Bank chairman James Mwangi Gacheru, one
of the partners in the project, said the plant will be financed by China
Exim Bank, which is also lending electricity distributor Kenya Power
Sh9 billion. It is on top the main financier of the Standard Gauge
Railway.
Mr Gacheru said the financing is being finalised
and a report on the Power Purchase Agreement (PPA) is set to be
submitted to the Energy ministry for approval, paving the way for the
plant’s construction.
“Construction will begin once we agree on the PPA. The money is available,” Mr Mwangi told the Business Daily.
GEM-CM Construction Ltd chief executive Martin
Kinoti Kinyua is the other partner in the Chagem Power project. The
Environmental Impact Assessment (EIA) report says a 10 kilometre access
road will be upgraded, an office block and a two-kilometre line
constructed.
The power will be generated by 34 GE turbines. The
EIA report says part of the fringe benefit of the project will be
opening up of the area through upgrading of the road.
Kajiado County is also hosting Kipeto wind farm
expected to add 100MW to the national in 2017. Construction of the Sh27
billion plant is expected to begin by next March.
The county is home to KenGen’s 25.5MW wind farm located in Ngong Hills. It cost Sh4.5 billion.
The listed utility provider plans to invest more
funds in wind and geothermal energy with proceeds from the Sh15 billion
rights issue expected to take place early next year.
KenGen plans to put up another 100MW wind plant in
Meru County at Sh29.9 billion. The county will as well host a 40MW
plant to be developed by Bluesea, a private company.
Kinangop Wind Park by Aeolus Kenya will add 60.8 megawatts to the national grid. TransCentury is putting up a Sh11.7 billion 50MW wind power plant in Limuru, Kiambu County.
The infrastructure and power firm said it expects to put up more wind plants.
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